Learn more about the housing market in Virginia

Every state is unique when it comes to the real estate market. That’s why it’s critical to understand the market you live or operate in. Whether you’re renting, buying, or selling, it will impact many aspects of your life.   

In this article, we’ll take a closer look at the Virginia housing market going into 2026, including key trends, pricing shifts, and metrics that matter for homeowners, renters, and investors.

Key Takeaways

1. Virginia’s housing market is stabilizing going into 2026, with modest price appreciation, slightly higher inventory, and longer days on market in many regions.
2. Home prices remain elevated in high-demand metros such as Northern Virginia and Richmond, though growth has slowed compared with earlier years.
3. Mortgage rates have eased from 2023 highs, supporting steadier buyer activity, but affordability challenges persist for first-time buyers and renters.
4. Rental affordability remains strained, especially in urban and suburban markets, even as rent growth has moderated and supply conditions have improved slightly.

Virginia Housing Market Overview  

Virginia is a state in the Southeastern portion of United States between the Atlantic Coast and the Appalachian Mountains. Some of the largest cities in Virginia include Virginia Beach, Chesapeake, and Arlington. 

According to economic data from Cardinal News, Virginia’s economic growth has slowed compared with earlier in the decade, with GDP growing around 1.7% in early 2025, ranking the state in the mid-30s nationally for growth rate. This slower expansion has been reflected in housing market dynamics, where home price appreciation has been modest rather than explosive, and inventory pressures have begun to ease in some areas.

At the start of 2025, experts predicted that home prices in Virginia would continue climbing, especially in high-demand regions like Northern Virginia and the Richmond metro. That trend has generally held: the statewide median home sale price was about $425,000 in late 2025, up roughly 3% year-over-year, even as inventory levels grew and days on market lengthened slightly.

Mortgage rates have fallen from their 2023 highs into the mid 6% range for many buyers, which has encouraged some additional activity and helped stabilize demand even as affordability challenges persist. Looking into 2026, most forecasts expect steady, moderate price growth with more balanced conditions as inventory continues to expand and rate stability attracts more prospective buyers.

Virginia Housing Market Trends  

To understand the Virginia real estate market, it’s important to keep up with trends such as the average price and rate of rising property prices in Virginia. On the whole, rising interest rates are making it more difficult for first-time home buyers to purchase a home, affecting the behavior of existing homeowners, and causing seller hesitation in setting prices. Let’s look in more detail at some of the key real estate trends in Virginia: 

Note: These statistics are based on Redfin’s monthly housing data from November 2025. 

Median Home Price 

The median price of a home in Virginia as of November 2025 was $455,700, according to Redfin’s monthly housing market data. This is an increase of 2.6% from November 2025. In Virginia Beach, Virginia’s most populous city, the median price in November 2025 was lower at $395,000, which was still a stable and slight decrease of only 0.38% from the previous year. Richmond, the capitol city, had identical prices to Virginia Beach's median at $395,000, a 10.3% decrease from 2024.   

The list price plays a significant role in competitive market dynamics and seller dominance, with many homes being sold above or below the list price depending on the market conditions.  

Number of Homes Sold in November 2025  

7,968 homes were sold in Virginia in November 2025, which is a 4.5% decrease from the previous year. Virginia sold statistics show a decline in home sales across the state, attributing it to factors such as rising interest rates and increasing home prices. Though this suggests an increase in inventory throughout the year, the supply still isn’t keeping pace with demand. 

It’s also important to keep in mind that nationally speaking, sales usually peak during the spring and summer months and slow in the winter. In fact, the National Association of Realtors (NAR) predicts that in February and March alone, sales activity increases by as much as 34% and prices by 3%. 

Median Days on Market (DOM)  

Days on market (DOM) is a measure of the average length of time a home remains listed on the market before being put under contract. A lower DOM signals a highly competitive seller’s market with more pressure on buyers to make higher offers and remove contingencies. A higher DOM signals a buyer's market as sales are slower and sellers have less leverage.   

The median DOM in Virginia in April 2024 was 41 days, which up 6 from November 2024. 

New Supply Statistics  

In November 2025, Virgnia had 3 months of supply, which is below the 4-5 months experts typically say is healthier for a housing market. Thus, this statistic also means Virginia leans to sellers more than buyers.  

Property Tax Rate  

According to Rocket Mortgage, the average property tax rate in Virginia is 0.87%. This is right around the middle of the pack compared to the rest of the states. However, it is important to keep in mind that this statistic reflects the average of a lot of data in a populous state with significant geographic and economic diversity. Tax rates are likely to vary depending on the value of a home and its location in the state.   

Foreclosure Rate in October of 2025

In October of 2025, 1 in every 5,895 homes in Virginia experienced a foreclosure filing, according to recent data from ATTOM. This isn’t extremely high or extremely low, representing a foreclosure rate that's about average compared to the rest of the U.S as Virginia heads into 2026.

Hottest Local Markets in Virginia  

Here are a couple of the top local housing markets in Virginia for 2024, where the median sale price provides a benchmark for understanding the overall price trends within the housing market: 

1. Virginia Beach

Virginia Beach is the most populous city in Virginia by a significant margin. This resort area is at the mouth of the Chesapeake Bay. In November of this year, there were 424 homes sold, which is a slight increase from last year. With a DOM of 30 days, this area is also a sellers’ market. 

2. Norfolk

This waterfront city in the southeast part of Virginia is home to a large naval base. It’s also home to a very competitive housing market, which has seen a 6.7% increase in median sale price and almost a stabilized number of homes sold over the past year.

The Richmond Metro Area is witnessing significant drops in sales activity alongside other regions like Lynchburg and Northern Virginia. 

Economic Factors Impacting the Virginia Housing Market  

A holistic view of Virginia’s housing market requires a basic understanding of the main economic drivers affecting the market. Let’s take a look at a few critical ones below: 

Rising Interest Rates 

Mortgage rates are a common cause of concern for would-be homeowners across the U.S. in 2024. As previously mentioned, Bankrate lists Virginia’s current 30-year fixed-rate mortgage averages 6.32%, which hovers slightly below the national average. As predicted, this number has settled when compared to the numbers seen towards the end of 2023. Yet, existing homeowners in Virginia are still staying in their homes longer due to the interest rate environment and the limited housing supply going into 2026.

Inflation and Cost of Living 

Mortgage rates are tied to inflation, another massive contributing factor to the affordability of housing and the state of housing markets in general. Inflation has increased the cost of living for many across the U.S., including in Virginia. This means fewer people can truly afford to limit housing costs to less than 30% of their monthly income.   

Population Changes and Demographics 

A changing population can also have implications for the housing market. According to the U.S. Bureau of Labor Statistics, the unemployment rate in Virginia is 3.5%, which is still below the national average, though a slight increase from the previous year. This low unemployment rate suggests a healthy economy that is bound to help the housing market in the state.   

Virginia Housing Market Forecast 2026  

As Virginia moves into 2026, earlier predictions of continued home price appreciation have largely held true, though growth has slowed compared with prior years. Prices in many markets have continued to edge upward at a more moderate, sustainable pace, as easing mortgage rates and gradually improving inventory have reduced some of the intense competition that defined the market in previous years.

At the same time, it remains important to monitor areas where local price softening or month-to-month declines occur, particularly in markets sensitive to interest rate shifts or new supply. While modest corrections can improve affordability for buyers, broader or sustained price drops could signal underlying market stress, making ongoing tracking of regional trends essential heading into 2026.

Likelihood of Virginia Housing Market Crash  

Experts believe a housing market crash is highly unlikely. Virginia is one of the fastest-growing states in the nation and it has a healthy economy. The friendly tax policies are also helpful for people moving in. The average cost of living is below the average median household income, too.  

So, although Virginia has some issues as we’ve outlined earlier, it doesn’t seem to be in danger of a housing market crash anytime in 2026.

Forecast for the U.S. Housing Market  

Now that we’ve looked at Virginia’s housing market, let’s zoom out a little bit. What about the U.S. housing market? What do you need to keep an eye on in the coming years? 

The United States' current median existing-home sale price is around $415,200 per the National Association of Realtors. The inventory, though, remains low. A balanced market typically has a 5-to-6-month supply, but the current figure is 3 months, keeping conditions constrained.

We’re currently in a seller’s market with buyers looking at continued rising house prices—although they are rising at a slower pace compared to previous years.. The same trend can be seen with renters. Housing continues to appreciate, in general.

Dr. Lawrence Yun, Chief Economist and Senior Vice President of Research, National Association of Realtors, believes the housing market will appreciate 15 to 25% over the next five years. He thinks that the seller’s market will continue because housing inventory will remain low. In 2026, he predicts that existing home sales will rise an additional 13%. Yun expects mortgage rates to stabilize at the lower end of the current 6-7% range through 2025 and 2026 as the Federal Reserve continues gradual rate cuts. There's an anticipation of a more balanced market in the coming years, with moderate price growth and a greater amount of Americans re-entering the market.

Hybrid work also impacts the housing market. This shift in work culture means suburbia will continue to grow. States like Texas, the Carolinas, Tennessee, and Florida should see continual growth.

The number of single-family homes built decreased over the past couple years while the number of multi-family homes increased due to lower prices and a demand for affordable housing. Year-to-date single-family housing starts were down about 7.1% in 2025, whereas starts for buildings with five or more units were up roughly 14.5% Higher mortgage rates and inflation (affecting price of materials) were the main causes.

Lower income households continue to struggle in the current housing market. This trend appears likely to continue into the foreseeable future. According to the National Association of Home Builders, approximately 74.9% of U.S. households were unable to afford a newly built median-priced home in 2025. Without enhanced supply or helpful subsidies, the outlook is that many Americans will still wrestle with housing affordability in the years to come.

Virginia Rental Market  

The rental and buying market are obviously closely linked. When home prices fall, landlords are more likely to buy properties to rent out. Home prices and rental prices are correlated as well because a hot market means prices rise.   

Renter affordability remains a concern in Virginia heading into 2026, particularly in higher-cost markets such as Northern Virginia, Richmond, and parts of Hampton Roads. According to research from the Joint Center for Housing Studies at Harvard University, rent cost burdens remain at historic highs, with many households continuing to spend more than 30% of their income on rent and utilities

Although rent growth slowed in 2024 and 2025 as new multifamily units were delivered and demand softened, rents in many Virginia metros remain elevated relative to wage gains, meaning affordability pressures persist even as conditions have become more balanced. In several markets, year-over-year increases have moderated rather than reversed, keeping cost burdens fixed for middle-income renters.

Higher borrowing costs have also weighed on new multifamily investment, limiting the pace of future supply additions. The Federal Reserve’s Senior Loan Officer Opinion Survey continues to report weaker demand for multifamily loans, reflecting tighter lending standards and reduced transaction activity compared with earlier in the decade.

Altogether, Virginia enters 2026 with a rental market that is more stable than in peak pandemic years, but is still one where affordability challenges are widespread, especially in the state’s urban and suburban regions.

This short summary leads directly into Virginia’s current rental market. Below are just a few of the current trends for Virginia’s rental market based on data pulled from Zillow:

Virginia Rental Market Key Trends 

• Median rent: $2,000

• Month-over-month rent change: $0

• Year-over-year rent change: +$45 

• Available rentals: 12,645

Conclusion  

Virginia’s housing market continues to present both opportunities and challenges heading into 2026. While conditions remain generally seller-leaning, moderating price growth, easing mortgage rates, and gradually improving inventory suggest a shift toward more stable and balanced market dynamics. Analysts will continue to watch key factors such as interest rates, construction activity, and regional demand trends as the market evolves.

FAQs

What is the outlook for Virginia’s housing market in 2026?

Virginia’s housing market is expected to remain stable with slow, sustainable price growth, as easing mortgage rates and gradually expanding inventory continue to cool the intense competition seen in 2023–2024.

Is Virginia currently a buyer’s market or a seller’s market?

Most areas remain slightly seller-leaning, but rising inventory, moderating prices, and increasing days on market are pushing conditions closer to balanced in many metros.

Are home prices still rising in Virginia?

Yes, but at a slower pace than earlier in the decade. Statewide trends show modest year-over-year appreciation, with some markets seeing flat or slightly declining prices depending on supply and demand.

How are mortgage rates affecting buyers in 2026?

Mortgage rates have fallen from 2023 peak levels into the mid-6% range, improving affordability compared to prior years. However, rates remain above pre-pandemic norms, meaning borrowing costs are still a hurdle for many buyers.

What challenges remain for Virginia renters?

Even with slower rent growth, rent levels remain high relative to wages in many parts of the state particularly in Northern Virginia, Richmond, and Hampton Roads meaning affordability pressures persist heading into 2026.